Changes made to GST in favour of small companies and exporters

GST (Goods and Service Tax) has been made even simpler after the 22nd GST council meeting took place on 6th October 2017, as it has choose to reduce the burden of compliance on small and medium businesses.

The GST Council, in its 22nd Meeting which was held today in the national capital under Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses

Lesser Burden of Compliance for Small Businesses

Small and medium entities with annual turnover up to 1.5 crores have been facilitated in these changes as now they can make payments and file returns quarterly in Form GSTR 1, 2 and 3 and pay taxes only on a quarterly basis. The due dates for filing the returns will be announced soon.

Also small businesses will have to file monthly returns for 3 months July, August and September in a row and the switch will start from October 1st.

Relief for Service Providers

If a service provider’s annual turnover is less than Rs. 20 lacs they are exempted from registration. However the limit is different for a special category state such as J and K which is Rs. 10 lacs.

Services provided by GTA (Goods Transport Agency) to an unregistered person are also exempted from GST

A change in GST has made it convenient for the exporters to function. As every exporter will get an e – wallet . And in that wallet there will be an estimated amount for credit. The refund they will eventually get will be offset from that amount. The e – wallet will come into being from April 2018 onward.

For July exports refund will be processed by October 10. And for August exports refund dates has been fixed by October 18 onward.

Merchant exporters will pay a nominal 0.1 % GST applicable on exports to enable their suppliers to claim ITC.

Composition Scheme Changes

In Composition Scheme small tax payers can get rid of tedious GST GST formalities and pay GST at a fixed rate of turnover, which in turns becomes easy and simple for the tax payers.

Tax payers who are otherwise eligible for availing the composition scheme and are providing any exempt services will now be eligible for the composition scheme.

Eligibility of composition scheme has now been raised to Rs. 1 crore.

Now under the composition scheme traders will pay 1%, manufacturers will pay 2% and restaurants will pay 5%.

Change will provide some relief for the jewellers as now it does not require providing a PAN card for the purchase of jewellery more than Rs. 50, 000. The amount of jewellery purchase for which KYC will be required will be determined later.

On the changes Prime Minister Shri Narendra Modi stated that

GST is in line with our constant endeavour to ensure interests of our citizens are safeguarded & India’s economy grows

Further

he congratulated Finance Minister Arun Jaitley and his team for engaging with various stakeholders for “extensive feedback which led to today’s recommendations” on GST (Goods and Services Tax)

The next date of the council meeting has been fixed on 9th to 10th November this year at Guwahati.